CINEMARK HOLDINGS INC (CNK) Stock Fundamental Analysis
NYSE:CNK - New York Stock Exchange, Inc. - US17243V1026 - Common Stock - Currency: USD
CNK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 industry peers in the Entertainment industry. While CNK has a great profitability rating, there are quite some concerns on its financial health. CNK has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CNK was profitable.
CNK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CNK reported negative net income in multiple years.
Of the past 5 years CNK 4 years had a positive operating cash flow.
1.2 Ratios
CNK has a better Return On Assets (6.01%) than 86.11% of its industry peers.
CNK has a better Return On Equity (51.19%) than 94.44% of its industry peers.
CNK's Return On Invested Capital of 8.28% is amongst the best of the industry. CNK outperforms 80.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CNK is significantly below the industry average of 85.03%.
The 3 year average ROIC (5.91%) for CNK is below the current ROIC(8.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 51.19% | ||
| ROIC | 8.28% |
ROA(3y)1.43%
ROA(5y)-2.94%
ROE(3y)-43.93%
ROE(5y)-67.71%
ROIC(3y)5.91%
ROIC(5y)N/A
1.3 Margins
CNK has a Profit Margin of 9.98%. This is amongst the best in the industry. CNK outperforms 87.50% of its industry peers.
CNK's Profit Margin has improved in the last couple of years.
The Operating Margin of CNK (11.88%) is better than 80.56% of its industry peers.
CNK's Operating Margin has been stable in the last couple of years.
The Gross Margin of CNK (64.42%) is better than 75.00% of its industry peers.
CNK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.88% | ||
| PM (TTM) | 9.98% | ||
| GM | 64.42% |
OM growth 3YN/A
OM growth 5Y-0.86%
PM growth 3YN/A
PM growth 5Y11.48%
GM growth 3Y-0.83%
GM growth 5Y0.4%
2. Health
2.1 Basic Checks
CNK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
CNK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CNK has more shares outstanding
Compared to 1 year ago, CNK has an improved debt to assets ratio.
2.2 Solvency
CNK has an Altman-Z score of 1.20. This is a bad value and indicates that CNK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CNK (1.20) is comparable to the rest of the industry.
The Debt to FCF ratio of CNK is 7.80, which is on the high side as it means it would take CNK, 7.80 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.80, CNK is doing good in the industry, outperforming 65.28% of the companies in the same industry.
CNK has a Debt/Equity ratio of 3.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.33, CNK is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 7.8 | ||
| Altman-Z | 1.2 |
ROIC/WACC1.11
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.01 indicates that CNK should not have too much problems paying its short term obligations.
CNK has a Current ratio (1.01) which is comparable to the rest of the industry.
CNK has a Quick Ratio of 1.01. This is a bad value and indicates that CNK is not financially healthy enough and could expect problems in meeting its short term obligations.
CNK has a Quick ratio (0.99) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
CNK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.04%, which is quite impressive.
The Earnings Per Share has been growing slightly by 4.49% on average over the past years.
CNK shows a decrease in Revenue. In the last year, the revenue decreased by -0.56%.
Measured over the past years, CNK shows a decrease in Revenue. The Revenue has been decreasing by -1.47% on average per year.
EPS 1Y (TTM)65.04%
EPS 3YN/A
EPS 5Y4.49%
EPS Q2Q%320%
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y26.39%
Revenue growth 5Y-1.47%
Sales Q2Q%27.45%
3.2 Future
The Earnings Per Share is expected to decrease by -14.64% on average over the next years. This is quite bad
CNK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.64% yearly.
EPS Next Y-0.58%
EPS Next 2Y8.76%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue Next Year9.82%
Revenue Next 2Y8.42%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CNK is valuated correctly with a Price/Earnings ratio of 12.02.
Compared to the rest of the industry, the Price/Earnings ratio of CNK indicates a rather cheap valuation: CNK is cheaper than 88.89% of the companies listed in the same industry.
CNK is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
CNK is valuated correctly with a Price/Forward Earnings ratio of 12.09.
CNK's Price/Forward Earnings ratio is rather cheap when compared to the industry. CNK is cheaper than 91.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CNK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 12.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CNK indicates a rather cheap valuation: CNK is cheaper than 81.94% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CNK is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.47 | ||
| EV/EBITDA | 7.84 |
4.3 Compensation for Growth
CNK has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CNK's earnings are expected to decrease with -14.64% in the coming years.
PEG (NY)N/A
PEG (5Y)2.68
EPS Next 2Y8.76%
EPS Next 3Y-14.64%
5. Dividend
5.1 Amount
CNK has a yearly dividend return of 0.33%, which is pretty low.
In the last 3 months the price of CNK has falen by -30.64%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CNK's Dividend Yield is rather good when compared to the industry average which is at 5.44. CNK pays more dividend than 80.56% of the companies in the same industry.
With a Dividend Yield of 0.33, CNK pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
5.2 History
CNK has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y8.76%
EPS Next 3Y-14.64%
24.4
+0.66 (+2.78%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)
Earnings (Next)
Inst Owners119.94%
Inst Owner Change1.28%
Ins Owners2.2%
Ins Owner Change-8.52%
Market Cap2.98B
Analysts74.29
Price Target33.21 (36.11%)
Short Float %19.37%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)48.18%
Min EPS beat(2)-13.33%
Max EPS beat(2)109.69%
EPS beat(4)3
Avg EPS beat(4)136.22%
Min EPS beat(4)-13.33%
Max EPS beat(4)254.24%
EPS beat(8)6
Avg EPS beat(8)88.81%
EPS beat(12)6
Avg EPS beat(12)0.1%
EPS beat(16)7
Avg EPS beat(16)6.19%
Revenue beat(2)2
Avg Revenue beat(2)2.55%
Min Revenue beat(2)1.9%
Max Revenue beat(2)3.21%
Revenue beat(4)4
Avg Revenue beat(4)3.13%
Min Revenue beat(4)1.9%
Max Revenue beat(4)5.09%
Revenue beat(8)8
Avg Revenue beat(8)3.85%
Revenue beat(12)11
Avg Revenue beat(12)2.93%
Revenue beat(16)14
Avg Revenue beat(16)7.53%
PT rev (1m)-2.69%
PT rev (3m)0.88%
EPS NQ rev (1m)-328.83%
EPS NQ rev (3m)-136.27%
EPS NY rev (1m)-0.88%
EPS NY rev (3m)3.58%
Revenue NQ rev (1m)-5.47%
Revenue NQ rev (3m)-8.98%
Revenue NY rev (1m)-1.06%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.02 | ||
| Fwd PE | 12.09 | ||
| P/S | 0.98 | ||
| P/FCF | 9.47 | ||
| P/OCF | 6.4 | ||
| P/B | 5.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.84 |
EPS(TTM)2.03
EY8.32%
EPS(NY)2.02
Fwd EY8.27%
FCF(TTM)2.58
FCFY10.56%
OCF(TTM)3.81
OCFY15.62%
SpS24.93
BVpS4.86
TBVpS-7.73
PEG (NY)N/A
PEG (5Y)2.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.01% | ||
| ROE | 51.19% | ||
| ROCE | 9.57% | ||
| ROIC | 8.28% | ||
| ROICexc | 11.49% | ||
| ROICexgc | 26.39% | ||
| OM | 11.88% | ||
| PM (TTM) | 9.98% | ||
| GM | 64.42% | ||
| FCFM | 10.34% |
ROA(3y)1.43%
ROA(5y)-2.94%
ROE(3y)-43.93%
ROE(5y)-67.71%
ROIC(3y)5.91%
ROIC(5y)N/A
ROICexc(3y)7.77%
ROICexc(5y)N/A
ROICexgc(3y)16.27%
ROICexgc(5y)N/A
ROCE(3y)6.83%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y17.77%
ROICexc growth 3YN/A
ROICexc growth 5Y8.59%
OM growth 3YN/A
OM growth 5Y-0.86%
PM growth 3YN/A
PM growth 5Y11.48%
GM growth 3Y-0.83%
GM growth 5Y0.4%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.33 | ||
| Debt/FCF | 7.8 | ||
| Debt/EBITDA | 3.54 | ||
| Cap/Depr | 76.35% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 2.56 | ||
| Cash Conversion | 83.23% | ||
| Profit Quality | 103.58% | ||
| Current Ratio | 1.01 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.2 |
F-Score5
WACC7.45%
ROIC/WACC1.11
Cap/Depr(3y)64.73%
Cap/Depr(5y)52.5%
Cap/Sales(3y)4.78%
Cap/Sales(5y)6.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.04%
EPS 3YN/A
EPS 5Y4.49%
EPS Q2Q%320%
EPS Next Y-0.58%
EPS Next 2Y8.76%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.56%
Revenue growth 3Y26.39%
Revenue growth 5Y-1.47%
Sales Q2Q%27.45%
Revenue Next Year9.82%
Revenue Next 2Y8.42%
Revenue Next 3Y6.64%
Revenue Next 5YN/A
EBIT growth 1Y-2.53%
EBIT growth 3YN/A
EBIT growth 5Y-2.31%
EBIT Next Year95.66%
EBIT Next 3Y15.34%
EBIT Next 5YN/A
FCF growth 1Y6.92%
FCF growth 3Y64.6%
FCF growth 5Y4.05%
OCF growth 1Y4.88%
OCF growth 3Y41.01%
OCF growth 5Y-3.68%